Osisko Development Files Early Warning Report Regarding Falco Resources Ltd.

The most recent news, dated October 27, 2025, states that Osisko Development Corp. (ODV) has filed an Early Warning Report regarding Falco Resources Ltd. This report signifies that ODV acquired units of Falco Resources Ltd. through a private placement. ODV subscribed for 6,250,000 units of Falco at a price of C$0.32 per unit, totaling C$2 million in gross proceeds. Each unit consists of one common share and one common share purchase warrant of Falco, with a warrant exercise price of C$0.32 and a 24-month term. This transaction indicates Osisko Development Corp. acting as an investor in another company's financing.

This news is a routine, neutral event for Osisko Development Corp. While it indicates active portfolio management and an investment in another mining entity (Falco Resources), the C$2 million investment is not material in the context of Osisko Development’s overall financial position or its flagship Cariboo Gold Project's significant capital requirements.

In the past year, Osisko Development has made substantial progress on its Cariboo Gold Project and secured considerable financing: * Permitting: By December 2024, the Cariboo Gold Project achieved "shovel-ready" status with the receipt of both Mines Act and Environmental Management Act permits. This was a critical de-risking milestone for the project. * Feasibility Study (FS): An Optimized Feasibility Study for Cariboo was announced in April 2025 and filed in June 2025, presenting a Base Case after-tax NPV5% of C$943 million and an IRR of 22.1% at US$2,400/oz gold, with initial capital costs estimated at C$881 million. This updated study provided a strong economic foundation for the project. * Financing Secured: * In November 2024, the company closed US$92 million in private placements (at US$1.80/unit). * In July 2025, it secured a US$450 million project loan credit facility from Appian Capital Advisory Ltd., with an initial draw of US$100 million used, in part, to repay an existing US$25 million term loan. This facility is crucial for the Cariboo project's construction. * In August 2025, a US$203 million private placement closed (at US$2.05/unit). * In October 2025, a C$75 million bought deal offering (including flow-through and common shares at C$4.78 and higher for flow-through) was significantly upsized due to demand, with approximately C$30 million earmarked for Cariboo construction. These financings, totaling over US$700 million (including the loan facility and recent equity), represent a substantial funding package for the Cariboo Gold Project's C$881 million initial capital expenditure. * Project Progress: Underground development at Cariboo's Lowhee zone was 100% completed by December 2024. Infill drilling is ongoing, with encouraging high-grade intercepts reported in September and October 2025. Ore sorting testwork in July 2025 showed positive results, exceeding FS assumptions in some aspects, particularly for gold recovery in smaller fractions. * Cash Flow & Debt: The company reported CAD 46.3 million in cash and equivalents as of June 30, 2025, and subsequently repaid its US$25 million term loan using funds from the Appian facility. The large net losses reported in Q1 and Q2 2025 (-C$37.33M and -C$84.73M respectively) highlight the significant cash burn associated with pre-production activities, making ongoing financing critical.

Given the magnitude of the Cariboo project's funding and development, Osisko Development's C$2 million investment in Falco Resources is a minor event. While it does use some capital, it does not materially alter the company's financial position, its ability to fund Cariboo, or its strategic direction. The recent substantial financings and project milestones are far more impactful. The ongoing cash burn for project development and exploration is much larger than this specific investment.

Osisko Development Corp. (ODV) is a North American gold development company focused on advancing its 100%-owned Cariboo Gold Project in central British Columbia, Canada. The company also holds the Tintic Project in Utah, USA, and the San Antonio Gold Project in Sonora State, Mexico. The primary strategic objective is to become an intermediate gold producer.

Flagship Project: Cariboo Gold Project * Location: Central British Columbia, Canada. * Ownership: 100% owned. * Status: The project is fully permitted and considered "shovel-ready" as of December 2024, having received both Mines Act and Environmental Management Act permits. * Feasibility Study (2025 FS): An optimized Feasibility Study, effective April 22, 2025, and filed in June 2025, outlined robust economics: * Base Case (US$2,400/oz Au): C$943 million after-tax NPV5% and 22.1% unlevered after-tax IRR. * Spot Case (US$3,300/oz Au): C$2.1 billion after-tax NPV5% and 38.0% unlevered after-tax IRR. * Production Profile: A 10-year mine life with an average annual gold production of ~190,000 ounces, reaching 202,000 ounces in the first five years. Total payable gold of 1.89 million ounces. * Costs: Average All-in Sustaining Cost (AISC) of US$1,157/oz over the life of mine. * Capital Costs: Initial capital expenditure of C$881 million, with C$525 million in sustaining capital over the life of mine. * Development: Underground development (1,172 meters) from the Cow Portal into the Lowhee Zone was 100% completed by December 2024. A bulk sample program (targeting up to 10,000 tonnes, with 7,400 tonnes extracted by Q2 2025) is ongoing to reconcile with the resource model and validate ore sorting assumptions. * Exploration: An ongoing 13,000-meter infill drilling program in the Lowhee Zone began in August 2025. Initial results from this program, as well as an earlier 2024 program at the QR Mine Prospect, have yielded high-grade gold intercepts, indicating good continuity and potential for resource expansion. * Ore Sorting: Positive bulk tonnage ore sorting results from July 2025 showed high waste rejection (42-55%) and gold recovery (84-89%), with an upgrade ratio of 2.0-2.1, exceeding the FS assumption of 1.95. This technology is expected to enhance project economics. * Construction Timeline: Full-scale construction is anticipated to commence in the second half of 2025, with first gold production targeted for H2 2027.